The employer-employee relationship is a mutual relation where both equally need each other. Therefore, where employees compete for certain jobs, employers also compete to retain certain type of employees. Employee retention is the part of human resource that may be defined as the ability of the organization to retain employees for maximum period of time. After years of ignoring it as an important issue, organizations have now realized its importance and are working to understand its pros and cons.
Why is retention important?
All the company stakeholders including HR has underestimated employee turnover since the beginning and this is the reason that it has become an issue in past decade for every type and size of organization.
1. Hiring the new recruit or the replacement is a time consuming process and the organization has to reinvest the time and money in new employee’s grooming.
2. Studies have also shown that people who have remained for longer in the organization develop a sense of belongingness with the organization and become loyal to it.
3. Employees with high potential ultimately help in meeting organizational goals and increasing profits and hence should be retained by the organization.
4. Employees working with the organization for some time have better understanding of the terms and policies of the organization and thus also adjust better.
Role of HR in retention
Human resource department of an organization plays an important role in employee retention:
● HR must conduct exit interview every time an employee leaves. Sometime there are reasons which are directly related to the profile of the employee, the atmosphere of the organization, behavior of the seniors or other team members or the work culture. The inputs may be used to improve situation for the current employees.
● A good recruitment process is also a part of employee retention. This may be the tricky part of HR’s job but finding the right employee who not only perfectly fits the organization but also enjoys what he does has increased possibilities of staying in the organization for long.
● In case an employee is leaving for better remuneration, then HR must try to negotiate better salary and other benefits to retain the employee. Hiring is not an easy process and is conducted by HR only.
● HR’s doesn’t completes at recruiting and negotiating with leaving employee; creating a healthy work environment and keeping employees motivated is also the part of their roles and responsibilities. Skill development trainings and extracurricular activities break the monotony of work and improve the employees’ comfort level.
● Performance analysis and rewarding the high performers not only improves the position of the rewarding employee but motivates others to perform better. Employees definitely stay longer where they are appreciated.
Challenges in employee retention
Human resource management assignment given to students in management schools at the end of the course aims Continue Reading.....
Created on Mar 25th 2019 03:23. Viewed 151 times.